Amazon’s streamlined buying and returning process has its downsides, as highlighted by the experiences of over 115,000 Delivery Service Partners (DSPs) who deliver Prime packages. These drivers face pressures, including traffic hazards, dog bites, and constant surveillance inside their vans.
Although returning Amazon orders is convenient, the massive volume of returns after holidays contributes to environmental issues. Nearly 6 billion pounds of landfill waste and 16 million metric tons of carbon dioxide emissions are generated annually from returns, with online purchases being three times more likely to be returned than store-bought items.
In 2021, a record $761 billion worth of merchandise was returned, with about 10.3% of returns deemed fraudulent. Additionally, Amazon’s third-party sellers dispose of roughly one-third of returned items, raising concerns over wasteful practices.
Amazon has faced criticism for destroying millions of items but claims to be striving for “zero product disposal.” To address the issue, the e-commerce giant launched programs to resell returns or auction them off on the liquidation market, which has grown to a $644 billion industry. As supply chain backlogs cause product shortages, the liquidation market benefits from the increasing demand for sustainable retail options.
One of the major players in this market is Liquidity Services, which resells unclaimed mail, TSA checkpoint items, outdated military vehicles, and refurbished electronics, such as noise-canceling headphones and microchip manufacturing machines. Their returns warehouse outside Dallas, Texas, handles unwanted goods from Amazon and Target, which are then resold on platforms like Liquidation.com.
VIDEO: CNBC
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